Cost index for road goods transport

Laspeyres price index is a price index in which the weight basis is kept constant. A chained Laspeyres price index is an index comprised of several Laspeyres price indices with different weights.

Prices are actual sales prices of goods and services sought by the road transport industry and lorry owners.

Cost components are the main expenses for lorry owners, which have been defined as:

• Wages
• Social costs
• Repair and service costs
• Fuel
• Tyres
• Rental costs
• Office supplies and printed materials
• Phone and postage
• Insurance
• Ferry costs and road tolls
• Depreciation
• Interest expenses
• Annual user weight tax/annual tax

Cost groups are the basis for the subindices. The cost index for road goods transport consists of five such subindices in total:

1. Wage and social costs

2. Fuel

3. Ferry costs and road tolls

4. Depreciation and interest expenses

5. Other costs

Vehicle group isa breakdown of the lorry stock into different groups according to the type of transport the vehicles are used for. The cost index for road goods transport consists of seven such vehicle groups:

1. Short distance transport, about 50 kilometers

2. Regional distance transport, about 100 kilometers

3. Long distance transport, about 500 kilometers

4. Tank lorry

5. Timber transport

6. Construction transport, short distances

7. Renovation transport, household waste

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Name: Cost index for road goods transport
Topic: Transport and tourism

Division for Energy, Environmental and Transport Statistics

National.

Statistics for the previous quarter are published around the middle of the following month.

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Production data are stored.

The purpose of the statistics is to describe the development in costs connected to running various categories of vehicles involved in road goods transport. The index was developed in 1997. Monthly lorry cost indices for groups of vehicles and types of costs have been produced regularly since January 1998. Since January 2009, the statistics have been produced using weights based on accounting figures for 2007 from a sample of enterprises in the road goods transport industry. January 2009 was introduced as the new reference period for the indices at the same time (January 2009 = 100). Since January 2009, a total cost index for road goods transport has also been calculated. The total cost index is a weighted average of the cost indices for the vehicle groups. At the industry's request, cost indices excluding ferry costs and road tolls have also been calculated since January 2009.

Statistics Norway (Statistics Norway), the Norwegian Lorry Owners Association (NLF) and a reference group with representatives of the trucking industry agreed to switch to a new cost index for road goods transport from the first quarter of 2019. The new index is calculated back to Q1 2016. Q1 2016 is set as the new base period in the index (Q1 2016 = 100).

From the first quarter of 2022, the cost index for trucks will be linked to the reference period (The period where the index is equal to 100) instead of being linked to the previous quarter. New reference period is 4th quarter 2021 = 100. The index is calculated back to the 1st quarter of 2016 with the 4th quarter 2021 = 100.

The statistics are produced on commission from the Norwegian Lorry Owners Association.

The statistics are used by businesses when signing and amending prices in road haulage contracts. The indices are also used in price negotiations between hauliers and transport users.

No external users have access to the statistics and analyses before they are published and accessible simultaneously for all users on ssb.no at 08 am. Prior to this, a minimum of three months' advance notice is given inthe Statistics Release Calendar. This is one of Statistics Norway’s key principles for ensuring that all users are treated equally.

The sub-index for labour costs is based on data from the quarterly labour costs statistics produced by Statistics Norway. The indices for administration costs and repair and service costs are based on price indices obtained from the Consumer Price Index of Statistics Norway.

In addition to this cost index, Statistics Norway compiles a price index for freight transport by road that measures the development in the actual billed prices of transport services.

The Statistics Act of June 21, 2019 number 32

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The cost index for road goods transport measures the quarterly changes in costs for seven goods road vehicle groups. The cost weights in the index are based on account information from a sample of companies in the freight transport by road industry (NACE 49.41). The price observations are collected from suppliers to the road haulage industry (banks, insurance companies, workshops, fuel and tyre dealers, road toll companies and so on).

The regular price suppliers report electronically every quarter.

There are separate samples for each of the costs that make up the index:

Wage and social costs include agreed wages and social costs (including labour tax) for normal working hours for full-time and part-time employees. These estimates are based on labour cost data for enterprises in the industry group freight transport by road from the quarterly labour cost statistics.

The fuel index is based on indicative truck diesel prices from selected providers across the country.

Ferry costs and road tolls are based on price reporting from ferry companies and toll companies.

Capital costs include balance depreciation, taxes and interest costs. Prices of lorry chassis and bodies are obtained from four and thirteen major suppliers respectively. Interest rate changes are based on the three-month NIBOR rate from the Central Bank of Norway.

Other costs are based on:

• Tyre costs on reported prices from the major tyre brand retailers in Norway
• Administration costs include rent, postage, phone, paper supplies
• Insurance costs on reports from insurance companies that have the largest market shares within the industry
• Annual fees and taxes are updated when changes occur
• Repair/service is based on the price index for maintenance and repair of personal transport equipment which is compiled for use in the Consumer Price Index. This index measures the overall growth in repair shop costs (parts and man-hour rates) at more than 60 auto repair shops all over Norway

Sample percentages, degrees of coverage and standard deviations are not estimated for the samples of price suppliers.

Form-based survey. The following forms are used:

• RA-0374b. Lorry chassis prices
• RA-0374c. Lorry extension prices
• RA-0374d. Lorry insurance prices
• RA-0374e. Lorry tire prices

The forms received are recorded manually in a FORMS application. The forms have simple mathematical and logical registration controls.

The calculation of the indices is done in four steps:

1. The price indices for the representative goods are estimated first. These representative goods form cost components for each cost group.

2. Secondly, the cost component indices are weighted together to sub-indices for each vehicle group.

3. The cost indices are then estimated by weighting together the sub-indices for each of the seven vehicle groups.

4. Since January 2009, the cost indices for the vehicle groups are also weighted together to form one total cost index for road goods transport.

The weights used in the cost indices for each vehicle group were calculated using accounting figures from a sample of enterprises in the road goods transport industry. The weights used in the total index for road goods transport are estimated using market shares for the vehicle groups that are included in the statistics.

5. Cost weight for road goods transport.

Old weights from 1st quarter 2016 - 4th quarter 2021

6. New weights for road goods transport from 1st quarter 2022.

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The use of collected data are in accordance with The Statistics Act.

The cost index for road goods transport has been calculated by Statistics Norway since January 1998. The survey replaced a quarterly cost survey for road goods transport compiled by the Norwegian Institute of Transport Economics until the 4th quarter of 1997. In case of revisions of the weights used in calculating the indices or other changes that can cause an external shift in the level of the indices, the affected indices are chained to maintain comparability over time. Since June 2008, the sub-indices for wages and social costs in the cost index for road goods transport are based on a new index for labour costs in enterprises connected to the road goods transport industry. The labour cost index measures changes in agreed salaries and social costs (including labour tax etc.). Previously, the changes in wages were merely based on similar data input from the quarterly wage statistics compiled by Statistics Norway, while the changes in social costs were estimated. Since January 2009, the statistics have been produced using weights based on accounting figures for 2007 and a new reference period (January 2009 = 100). The former time series of index figures were simultaneously replaced by a new series of figures. The new figures have been chained and recalculated in order to preserve the comparability of the statistics over time. Since January 2010, the sub-indices for repair and service costs are based on the price index for maintenance and repair of personal transport equipment which is compiled for use in the Consumer Price Index. This index measures the overall growth in repair shop costs (parts and man-hour rates), and has a progress which over time is comparable to the previous sub-indices for repair and service costs for the different vehicle groups at the main chains of vehicle service centres in Norway.

From the first quarter of 2019, there is a break with previously published index figures. The index has been calculated back to Q1 2016. The first quarter of 2016 is seen as a new base period in the index (Q1 2016 = 100).

From the first quarter of 2022, the cost index for trucks will be linked to the reference period (The period where the index is equal to 100) instead of being linked to the previous quarter. New reference period is 4th quarter 2021 = 100. The index is calculated back to the 1st quarter of 2016 with the 4th quarter 2021 = 100.

The price data are compared with similar data from the previous quarter. It may happen that a respondent reports the price for a different commodity than the previous quarter, and that this subsequently is registered as a price change. The scope of this type of error is assumed to be small in this index.

The data are revised with a set of simple manual and machine controls. The data are corrected where there are obvious errors. It is assumed that possible measuring and processing errors have not led to systematic errors in the results.

After reminders, the quarterly response rate is close to 100 per cent. In the event of partial non-response or other significant errors, the respondent is contacted. In some cases the price may be imputed with the average change in the prices supplied from other businesses or by copying the price from the previous quarter.

The sample of goods and services is scheduled for updating when it is required. Products and respondents that disappear are replaced. No calculations have been made of the sample skewness in the lorry cost index. International surveys for other indices indicate that the sample of goods and services is the source of the most skewness.

Over time, a certain change will take place in the cost structure of a road haulage company. In order to weight the price changes correctly in the lorry index the weight basis at any given time should reflect the company's costs. To meet this requirement the weights should be revised at regular intervals. A revision of the weights is planned every five to ten years for the cost index for road goods transport. No calculations have been made of measuring errors caused by non-representative weights.

As of the first quarter of 2022 the cost index for lorries will be directly linked to the reference period (the period where the index is equal to 100) instead of being linked to the previous quarter. This is a methodological change that has marginal consequences for the calculated values in the index. Statistics Norway believes this is a more accurate way of calculating the cost index as well as making the index more accessible and easier to understand.

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